U.S. Residential Solar PV Market Size, Share & Trends Analysis Report By Construction (Retrofit, New Construction), By State (California, New York, New Jersey, Arizona, Massachusetts, Texas) And Segment Forecasts, 2022 - 2030

Report Overview

The U.S. residential solar PV market size was valued at USD 11.75 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.4% from 2022 to 2030. The rise in environmental concerns about the increase in carbon emissions caused by the use of conventional fuels for transportation and power generation has prompted the country to seek out cleaner and more efficient energy sources.Increasing demand for renewable-based clean power generation, combined with supportive government policies, incentives, and tax benefits to install solar PV systems, is expected to propel the region's growth. The availability of net metering schemes for grid-connected systems as well as options to integrate battery storage systems for off-grid-connected systems has given the residential and commercial segments a boost in the current period.

The California solar PV market is anticipated to witness substantial growth in the forecast period owing to its protruding growth rate on account of strong federal schemes that include rising demand across the public and private sectors for green electricity, and solar investment tax credit. As per Solar Energy Industries Association, in 2019, the United States solar industry generated an investment of USD 33 billion in private investment.

The presence of favorable policies and regulations in California, such as net metering for solar PV, has been a major reason for its dominance in the residential solar PV market in the United States. Furthermore, the availability of various incentives for residential end users to install solar PV systems has boosted the residential solar PV market.

The rapid reduction in fossil fuel reserves has formed a need for the utilization of renewable sources of power generation. Solar energy is one of the fastest growing renewable sources of energy owing to the easy system installation and presence of ample amounts of sunlight across the globe leading to further growth of the market. Advantages associated with the setting up of floating panels on comparing with conventional plants are likely to propel the growth.

Construction Insights

The retrofit solar panels segment accounted for the largest revenue share of 74.44% in 2021. Solar PV installations in existing residential properties undergoing renovation work are included in the retrofit segment. Existing homeowners benefit from solar PV installation in a variety of ways, including lower electricity bills and increased resale value. Furthermore, choosing solar PV allows residential users to have an uninterrupted power supply, reducing their reliance on energy providers.

The availability of simple financing options is expected to increase the deployment of solar PV in the residential sector, particularly in the retrofit segment. Traditional banks, credit unions, and solar companies. The provision of supportive policies and plans for solar PV systems, combined with appealing financing options, has fueled the installation of solar PV in the residential sector in the United States.

However, the removal of ITC for the residential sector beginning in 2024 is expected to suppress market growth. Moreover, with a steep decline in solar PV costs over the last decade expected to continue over the forecast period, retrofit end users will still opt for solar PV systems coupled with battery storage over the forecast period to achieve an uninterruptible power supply.

The new construction solar panels segment held a share of 25.56 % in 2021. The installation of solar PV systems during the construction of new residential properties is included in this segment. The use of a solar PV system along with a utility power supply connection ensures that new residential properties have a continuous power supply. Furthermore, it helps to reduce the building's carbon footprint and may qualify it for green building certification. These factors cause selling costs to be higher in comparison to residential properties that do not have solar PV systems.

State Insights

In 2021, California dominated the residential solar PV market in the U. S. with a revenue share of 30.42%. The reason can be attributed due to various economic and environmental benefits, including several local investments to increase solar PV installations in the state. Texas is expected to become a nationwide solar power generation leader, with over 4 GW of capacity projected to be installed over the next five years.

Florida, Illinois, Nevada, Colorado, and other states make up the rest of the United States. Illinois is a growing solar energy market that has benefited from a strong renewable portfolio standard that requires 25% of electricity generated to come from renewable sources by 2025. The state's installed solar capacity is expected to increase further in the forthcoming years.

Key Companies & Market Share Insights

The U.S. residential solar PV industry is competitive with key participants involved in R&D and constant innovation done by the vendors has become one of the most important factors for companies to perform in this industry. Some prominent players in the U.S. residential solar PV market include:

• Tesla

• SunPower Corporation

• Sunrun

• Trinity Solar Inc.

• Sungevity

• Momentum Solar

• SPI Energy Co. Ltd.

• Ace Solar

• Sunlux

• Titan Solar Power

U.S. Residential Solar PV Market Report Scope

U.S. Residential Solar PV Market Segmentation

This report forecasts capacity and revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the U.S. residential solar PV market report based on construction and states:

• Construction Outlook (Capacity, MW; Revenue, USD Million, 2019 - 2030)

  • Retrofit

  • New Construction

• State Outlook (Capacity, MW; Revenue, USD Million, 2019 - 2030)

  • California

  • New York

  • Arizona

  • New Jersey

  • Massachusetts

  • Texas

  • Rest of U.S.